Hi Trish,
I'm working alongside Jeff on this issue. I'll try to explain the routing the mail is taking. What we've determined first and foremost, this ONLY occurs when we send emails to other Microsoft 365 tenants. If we send emails to Google, Yahoo, Amazon, etc, that are not M365 tenants mailflow works perfectly with no looping.
The looping occurs when the email message leaving the organization, whether its from on-prem Exchange or M365 tenant, the message is re-introduced into the M365 cloud and when that re-introduction is occurred, the message appears in the tenant as if the email HAS to be sent/re-sent from the M365 tenant.
2 examples -->
Contoso.com is a hybrid environment and abc.com is another M365 tenant customer
Scenario 1
--> Send an email from '@contoso.com' (on-premise) to '@abc.com'
--> Joe's email is sent through the default send connector. (It never touches the Hybrid connectors.)
--> Message received from Filter service
--> Filter service checks and finds that 'abc.com' has to go to M365
--> Filter service sends the message off to M365
--> M365 picks up the message and somewhere thinks it HAS to say " I, the contoso.com EXO tenant, sees the message (somehow) sent from on-prem, and now thinks it needs to send the email"
--> The M365 'contoso.com' EXO processes and sends the message out it's connector.
--> The connector chosen goes back to the Filter service.
So now we have a 'rinse and repeat'.
Scenario 2
--> Send an email from '@contoso.com' (cloud mailbox) to '@abc.com'
--> M365 sends the message to the filter service as per the rules and connector in place.
--> Message received from Filter service
--> Filter service checks and finds that 'abc.com' has to go to M365
--> Filter service sends the message off to M365
--> M365 picks up the message and somewhere thinks it HAS to say " I, the contoso.com EXO tenant, sees the message (somehow) and now thinks it needs to send/re-send the email"
--> The M365 'contoso.com' EXO processes and sends the message out it's connector.
--> The connector chosen goes back to the Filter service.
It now 'rinses and repeats'.
Initially we thought this had to do with the filtering service, but after careful inspection, it was determined that the filtering service was not at fault for these 2 simple reasons.
- We can send email to non-M365 tenants just fine.
- Emails sent from on-premise Exchange mailboxes BYPASSING the filtering service and sending to another M365 tenant show to have originated from the M365 Cloud Exo tenant REGARDLESS.
So right now we are stuck in determining why when a message is introduced or reintroduced into the M365 cloud environment destined for other M365 recipient domains that we see the message being sent from the 'contoso.com' M365 tenant regardless of origin. Our M365 should never be aware of an email re-introduced into the cloud destined for a recipient, but yet it is.
Hopefully I explained this clearly enough.